Which One of the Following Correctly Describes How Price Adjustment

question 69

Multiple Choice

Which one of the following correctly describes how price adjustment eliminates a surplus?

• A)As the price rises,the quantity demanded decreases and the quantity supplied increases.
• B)As the price rises,the quantity demanded increases and the quantity supplied decreases.
• C)As the price falls,the quantity demanded decreases and the quantity supplied increases.
• D)As the price falls,the quantity demanded increases and the quantity supplied decreases.
• E)As the price falls,the demand for substitutes decreases,which eliminates the surplus.

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Definitions:

Negative Attributions

A cognitive process where individuals attribute negative motives or characteristics to others' behavior, leading to potentially biased perceptions.

Constructive Action

An approach or behavior aimed at creating positive outcomes or proposing solutions, rather than merely criticizing or highlighting problems.

Self-fulfilling Prophecy

A belief or expectation that influences one's behavior in a way that causes the belief to become true.

Internal Factors

refer to elements within an organization such as its culture, policies, and employee morale, that can impact its operations and success.